Convenience Store Decisions, April 2018

Category Management Cold Dispensed Bob Schulte director of commercial sales for Cubbys Inc which operates 36 convenience stores and supermarkets in Nebraska Iowa and South Dakota said a component to a strong c store dispensed cold and frozen beverage program lies in operations Four or more flavors heads and never be down The facets of a successful program require less innovation than basic attention One of the biggest keys to getting people to try new products is merchandising them well so the products stand out and dont get lost in the myriad of products convenience stores carry said Gary Hemphill managing director of research for Beverage Marketing Corp Placing a new product near checkout is a tried and true way to encourage impulse purchases of new products Sampling is another option people are more likely to buy a product if they have the opportunity to try it first Impulse sales are often generated by beverages noted Nicole Leinbach Reyhle founder and principal of Retail Minded a consulting firm in Denver Customers may not even be thirsty but the idea of a refreshing cold drink is enticing Keeping this in mind consider how multiple displays versus just one in your store can help increase sell thru TWO FOR ONE DC Oils Collins recommended retailers try to get their frozen beverage company to install two machines if there is space This way you will have one running if the other goes down and it allows you to offer more flavors The most important thing is to keep the machine running Collins explained that sales can drop by as much as 50 during winter months and suggested running a lower price for all sizes For example any size 129 You will not make much on the largest cup but most people buy small or medium anyway Your distributor might give you some product to help with promotion Country Fairs Luben said limited time flavors should be kept on seasonally for three months It allows variety while not exaggerating the inventory issues between promotions In northern states she continued sales are seasonal That is why hot dispensed is so important for having an integrated dispensed beverage program said Luben Extending sales is helped with our stores when we offer market bundled sales with our highly successful foodservice program Luben also favors price promotions to entice customers When we are faced with a new competitor weve done some extended free fountain or coffee for not just foodservice but to maintain and even grow in some cases said Luben When it comes to signage Luben feels digital with motion works best Our target audience has a short attention span We are challenged to get their attention in the store let alone when they are identifying our store versus some other offer within or outside our channel Cubbys Schulte said his stores limited time drinks are kept on hand for a month and if popular are brought back sooner rather than later A series of monthly promotions helps sustain interest through the colder months Thirtyfoot storefront banners hung above main entryway help draw attention to the deals Feature the largest size at the smallest size cups price he advised For us it has been branding the fountain program and offering any size for 99 cents said Jeff Chase controller director of convenience store operations for Ed Staub and Sons Petroleum Inc in Klamath Falls Ore which operates 18 Eds Fastbreak locations Chase said he advises c store operators that promotional products should be left in place for about two months I feel if they come in and out too quick you never really get good traction but if it remains too long it may get stale Eds Fastbreak stores also use window clings or snap frames in the front of the store and danglers in other areas CLEANLINESS MATTERS Sanitation is paramount to a successful dispensed program Luben stressed Cleanliness determines if a customer buys from you or someone else said Luben The equipment and sales area requires constant vigilance for cleanliness and a schedule checklist must be maintained to ensure that sanitation standards are maintained Get set up on a thorough preventive maintenance program and promote promote promote the product Schulte urged colleagues Use national branded flavors like Coke Mountain Dew Dr Pepper Sunkist Orange A W Root Beer and others Have no less than four heads and preferably eight heads He added that dispensing machines must be put in thaw mode and cleaned weekly Robert Grimes director of property and maintenance for CoGos Company in Pittsburgh which operates 47 convenience stores advised having store staff clean the dispensing units weekly at a minimum We schedule daily cleanings of certain parts and a full cleaning weekly CSD 54 Convenience Store Decisions April 2018 cstoredecisions com

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